Are EDA Companies Getting Fair Value for their Software?

Mentor Graphics Reports Second Quarter Results  Mentor Graphics Corporation announced second quarter revenue of $205.7 million, up 15% over the prior second quarter. On a GAAP basis, earnings were $.03 per share, up from a loss of $.01 in the year ago second quarter, despite $4.1 million of in-process R&D charges related to the Sierra Design Automation acquisition. On a non-GAAP basis, earnings were $.15 per share, up from $.09 a year ago. These results incorporate the change in the fiscal year with the second quarter running from May 1 to July 31.

Accellera Approves Functional Design Verification Standard Accellera announced that its Board of Directors, representing semiconductor, IP, EDA companies and systems houses, approved Accellera's Open Verification Library (OVL) 2.0 as an Accellera verification standard last month. OVL improves electronic design quality and supports Assertion-Based Verification (ABV) with Verilog, SystemVerilog, VHDL and the Property Specification Language (PSL).

The Accellera OVL standard includes a library of assertion checkers provided as an open standard. It improves electronic design verification when using Hardware Description Languages (HDLs) and results in better quality designs by enabling effective use of ABV methodologies.

Solido Receives $6.5M Second Round Financing Solido Design Automation today announced second round financing of $6.5 million, bringing total funding in the company to $9 million. The funding will be used to help accelerate the development and deployment of Solido's transistor-level statistical design and verification software technology, which aims to ensure robust analog/mixed-signal, custom digital, and memory IC designs.

Open SystemC Initiative Launches New SystemC Community Website The Open SystemC Initiative (OSCI), an independent non-profit organization dedicated to supporting and advancing SystemC as an industry standard language for electronic system-level design, announced the launch of its new website for the SystemC community. Featuring fresh technical content, a range of free downloads, links to the activities of worldwide SystemC user groups, and user-friendly navigation, the new site furthers the organization's goal of making the worldwide SystemC community more vibrant, connected, and well informed. Visit the new site at: www.systemc.org.

Other EDA News

  • EVE Selected as Presenter for Power Architecture Developer Conference
  • Apache Design Solutions to Present at ISLPED 2007, a Session on Low Power Analysis and Verification
  • OCP-IP and Nexus Announce Collaboration on Industry Standard Debug Efforts
  • Synopsys and SMIC Jointly Address China Mobile TV Market with Low Power Design Solution
  • Apache Design Solutions to Present at ISLPED 2007, a Session on Low Power Analysis and Verification
  • Dune Networks Announces Availability of SPAUI Implementation on Altera FPGAs
  • Mentor Graphics President to Speak at Citigroup's Global Technology Conference
  • Altera Ships First Member of High-End Stratix III FPGA Family
  • Averant Announces Release of SolidPC 2.0, ARM AMBA 3 Assured Status
  • Cadence Executive Vice President and Chief Financial Officer Bill Porter to Present at the Citigroup Technology Conference
  • Synopsys Lowers the Cost of Semiconductor Testing at Tessolve
  • Solido Receives $6.5M Second Round Financing
  • LogicVision Announces New Release of Its Embedded SerDes Test Solution
  • Edgeware Video-on-Demand Server Achieves Breakthrough Performance With Altera FPGAs
  • New Kit From Cadence Cuts Risk and Time for Adopting Functional Verification Methodology
  • Open SystemC Initiative Launches New SystemC Community Website
  • Cadence Selects Chipidea's USB 2.0 IP For Its SoC Functional Verification Kit
  • Cost-Effective, Ultra-High-Quality Test Results Using Synopsys DFT MAX Achieved at SHARP
  • Other IP & SoC News

  • Mobilygen Appoints Anoop Khurana as New VP Engineering

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  • Rating:
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    Review Article
    • Are they really willing to change? September 04, 2007
      Reviewed by 'r36579'
      Certainly there is some talk about value-based pricing for some time now, especially in the area of DFM where such tools should apparently save millions or even billions.
      Here the opportunity of value-based pricing is again discussed but finally a traditional EDA model is being applied to sell the software. So why settle again for the traditional?
      o Because it is more predictable short-term satisfying analysts and shareholders?
      o Value-based models are not accepted foremost by the users, but also analysts, shareholder?
      You state:
      "[...] It is hard for any industry to change its basic pricing model. However, the EDA industry has moved in recent years from perpetual license to time based license and subscriptions. SIP firms have had success with a combination of licensing fees and royalties. The industry might be willing to consider new pricing innovations. [...]"
      New pricing innovations?
      What does this mean? We already see higher prices, segmentation, no more volume bundling of all products by large vendors, debit card principles,...
      But is this really new? Or does it look more like variations of the established TBL, commitment, backlog principles?
      Really new would be value-based models with shared risk/ reward! Success components! Flexible volumes!
      While it fluctuates heavily the IC industry outgrows the EDA industry. Yes, it seems like a more risky investment but has shown traditionally higher returns that the stable, slow growth, (for analysts) very predictable EDA industry.
      Are EDA companies really willing to entertain really new business models? New ways of working with their customers to realize and demonstrate value on the product level? Tapping into new sources of incoming streams other than license/ consulting sales? Establishing some solution orientation?
      Is there an infliction point that has to happen before these models can change? If yes, which one? Maybe a new generation of EDA leaders which are not stuck in old ways of doing things? Less influence by VCs and serial entrepeneurs who look more towards cash than to solve the problems of EDA customers?
      Right now the EDA industry rather seems determined to capitalize by all means possible on the increased R&D spendings of the IC industry. Like a leech.
      The EDA business/ market is increasing, alright. But at what hidden "cost" to his user base? Are they all 'satisfied' with this new 'hunger'/ demand of the EDA industry to ferociously grow since the IC industry grows?
      I would think that the current EDA accounting principles and the analyst expectations for predictable and long-term growth as well as the short-term expectations to capitalize on the increasing IC R&D budgets are creating a tremendous innovation bottleneck in terms of new models! And therefore cutting off new possible streams of income such as value-based models, success components.
      The cited move from perpetual to TBL licenses was a concerted effort by both the EDA industry and the EDA users.
      It is now time to sit together again to think about the next new model change.


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